Manchester United is set to cut 250 jobs as part of an effort to reduce costs and eliminate some “non-essential” activities.
United director Sir Dave Brailsford has conducted a comprehensive review of club operations since Ineos’ co-ownership of the club was confirmed in December.
Sir Jim Ratcliffe had previously expressed his desire for staff to return to working from club premises.
However, club sources now indicate that a significant financial transformation is necessary to address the steep year-on-year cost increases.
The review concluded that the current size and structure of the club do not align with its football performance, and there are more staff than needed.
Cost savings have been identified by ceasing “non-essential” activities, although it is not yet clear what these activities are. The goal is to reduce headcount and employee costs. United currently employs 1,150 full-time staff members.
Interim chief executive Jean-Claude Blanc announced the cuts at an all-staff meeting attended by around 800 people.
This decision is likely to be met with criticism, as many argue that poor recruitment around the first team has wasted far more money than will be saved by reducing the workforce.
Two years ago, former chief executive Richard Arnold was recorded telling fans that United had “burned through” £1bn on players with little to show for it.
United last won the Premier League in 2012-13. Since then, they have spent £1.5bn on new players, with few proving to be good value.
This summer, the club had a £35m bid for Everton defender Jarrad Branthwaite turned down and is looking to sign two central defenders and an additional forward.
Additionally, United has committed £50m to the development of its Carrington training ground, which has temporarily displaced the women’s team to accommodate Erik ten Hag’s squad.
In a recent interview with Bloomberg, Ratcliffe described the past six months since acquiring the club as “interesting” and acknowledged that it will be “not a short journey” to get United on the right path.
“It hasn’t kept up with the modern world,” he added. “Some of the practices are not at the level they should be for the biggest football club in the world.”
In the spring it was confirmed that a task force, which includes Greater Manchester Mayor Andy Burnham and former United captain Gary Neville, had been appointed to look into the financial viability of building a new stadium close to the current site at Old Trafford.
United officials privately say the decision to cut staff has not been taken lightly and all areas of the club will be affected, with the exception of the charitable arm, the Manchester United Foundation.
They say alternatives were considered but the impact would not have been long-lasting.
A formal process to propose redundancies will now commence.